Legislature(1997 - 1998)
03/09/1998 01:45 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
March 9, 1998
1:45 P.M.
TAPE HFC 98 - 58, Side 1
TAPE HFC 98 - 58, Side 2
TAPE HFC 98 - 59, Side 1
CALL TO ORDER
Co-Chair Gene Therriault called the House Finance Committee
meeting to order at 1:45 p.m.
PRESENT
Co-Chair Hanley Representative Kelly
Co-Chair Therriault Representative Kohring
Representative Davies Representative Martin
Representative Davis Representative Moses
Representative Foster Representative Mulder
Representative Grussendorf
ALSO PRESENT
Representative Bill Williams; Juanita Hensley, Legislative
Liaison, Division of Motor Vehicles, Department of Public
Safety; Dennis Poshard, Legislative Liaison, Department of
Transportation and Public Facilities; Chris Christensen,
Staff Counsel, Alaska Court System; Barbara Huff Tuckness,
Director, Legislative and Governmental Affairs, Teamsters
Local 959; Frank Dillon, Executive Vice President, Alaska
Trucking Association, Inc.; Laddie Shaw, Executive Director,
Alaska Police Standards Council; Deb Davidson, Staff,
Representative Davis.
The following testified via the teleconference network:
Peter Blanas, Anchorage; William Gates, Anchorage; Harry
McDonald, Anchorage; Aves Thompson, Division of Measurement
Standards and Commercial Vehicle Enforcement, Department of
Transportation and Public Facilities, Anchorage.
SUMMARY
HB 28 "An Act repealing the Alaska Coastal Management
Program and the Alaska Coastal Policy Council, and
making conforming amendments because of those
repeals."
HB 28 was HELD in Committee for further
consideration.
HB 261 "An Act relating to a surcharge imposed for
violations of state or municipal law and to the
Alaska police training fund."
HB 261 was HELD in Committee for further
consideration.
HB 404 "An Act relating to the regulation of commercial
vehicles; relating to the temporary registration
of out-of-state commercial vehicles; relating to
registration fees for commercial vehicles; and
providing for an effective date."
CSHB 404 (TRA) was REPORTED out of Committee with
"no recommendation" and with two fiscal impact
notes, one by the Department of Administration and
one by the Department of Transportation and Public
Facilities, both dated 2/27/98.
SCR 19 Relating to the use of prototype designs in public
school construction projects.
HCS CSSCR 19 (FIN) was REPORTED out of Committee
with a "do pass" recommendation and with a fiscal
impact note by the Department of Education, dated
2/6/98.
HOUSE BILL NO. 28
"An Act repealing the Alaska Coastal Management Program
and the Alaska Coastal Policy Council, and making
conforming amendments because of those repeals."
Co-Chair Therriault noted that HB 28 would not be heard. He
stated that amendments are being drafted for a proposed
committee substitute. An amendment to the legislation would
change boundaries to 10 miles from the coast. A consistency
determination would be required if the proposed activity
outside of the boundary dealt with a water discharge.
Another change would clarify that coastal districts and
agencies have the authority to comment and stipulate on
federal projects requiring a consistency determination.
Representative Martin observed that the legislation seems to
be concerned with inland waters. He maintained that city
and municipal governments should be responsible for
tributaries. Co-Chair Therriault pointed out that there are
no local governments in many areas.
SENATE CONCURRENT RESOLUTION NO. 19
Relating to the use of prototype designs in public
school construction projects.
Co-Chair Therriault observed that the House version of the
bill was previously reported out of the House Finance
Committee. CSHCR 24 (FIN) was reported out of Committee
with a "do pass" recommendation and with a fiscal impact
note by the Department of Education on 2/18/98.
Co-Chair Therriault provided members with a proposed
committee substitute for SCR 19, Work Draft 0-LS1357\P,
dated 2/27/98 (copy on file). Co-Chair Therriault noted
that the work draft is identical to CSHCR 24 (FIN).
Co-Chair Hanley MOVED to ADOPT Work Draft 0-LS1357\P, dated
2/27/98. There being NO OBJECTION, it was so ordered.
Co-Chair Hanley MOVED to report HCS CSSCR 19 (FIN) out of
Committee with the accompanying fiscal note. Representative
Davies OBJECTED for the purpose of discussion. He stressed
that prototypes should be developed with a particular
project in mind to reduce costs. Representative Davies
WITHDREW his objection. There being NO OBJECTION, HCS CSSCR
19 (FIN) was reported from Committee.
HCS CSSCR 19 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with a fiscal impact note by the
Department of Education, dated 2/6/98.
HOUSE BILL NO. 261
"An Act relating to a surcharge imposed for violations
of state or municipal law and to the Alaska police
training fund."
DEB DAVIDSON, STAFF, REPRESENTATIVE DAVIS testified in
support of HB 261. She noted that the legislation expands a
program that is already in effect. Alaska Law requires the
Alaska Police Standards Council to provide training for
police officers, correctional officers, probation officers
and village public safety officers. In 1996, the Alaska
Police Training Fund was established. Fund revenues come
from surcharges imposed on motor vehicle violations. House
Bill 261 expands the surcharge to all crimes and increases
the amount of the surcharge. Felony convictions and bail
forfeiture for felony offenses would have a surcharge of $85
dollars. Misdemeanor offenses dealing with drug and under
the influence revocation of licenses would have a $75 dollar
surcharge. Other misdemeanors would have a surcharge of $45
dollars. Violations and infractions would have a surcharge
of $15 dollars. She noted that the legislation was amended
in the House Judiciary Committee to direct judges not to
consider the surcharge when imposing a fine.
LADDIE SHAW, EXECUTIVE DIRECTOR, ALASKA POLICE STANDARDS
COUNCIL spoke in support of the legislation. He observed
that the Alaska Police Standards Council has increased its
basic training commitments. The Council supported training
for 13 officers in FY 96. The Council would support up to
100 officers in training for FY 2000. Training at the Sitka
Academy would increase. Fairbanks is developing a police
academy and the Council is negotiating to sponsor basic
training at the Anchorage Academy. The Council has also
taken on the responsibility of a basic municipal corrections
officer-training program held at the Anchorage Academy.
In response to a question by Co-Chair Therriault, Mr. Shaw
observed that the proposed surcharge would be similar to
those in place in Oregon. Twenty-six states run their
programs with surcharges. The legislation was based on the
Oregon program.
Representative Davis noted that it is difficult to compare
Alaska with other states. He noted that the Alaska State
Troopers are not highway patrolmen. Other states have
highway patrolmen.
Co-Chair Therriault referred to the fiscal note by the
Alaska Police Standards Council. Mr. Shaw clarified that
the Council received $396.1 thousand dollars in surcharge
revenues for FY 97. He estimated that $450 thousand dollars
would be collected from surcharges in FY 99. The Council
had an unfilled authorization of $53.9 thousand dollars.
CHRIS CHRISTENSEN, STAFF COUNSEL, ALASKA COURT SYSTEM stated
that the Supreme Court does not take a position on the
legislation. He provided members with Amendment A (copy on
file). Amendment A would neutralize the Alaska Court
System's fiscal note. He explained that Alaska Court
System's computer system is only capable of accounting for
one surcharge. Their new computer system is estimated to be
operational in two years. He observed that if everyone that
was charged a surcharge paid before they left the courthouse
that there would not be a problem. He noted that there are
many variables in tracking fines and surcharges.
Mr. Christensen observed that the Court System collects
approximately $4.4 million dollars in fines and forfeitures.
He noted that it would not cost any money to impose a
surcharge, collect a surcharge or turn the money over to the
General Fund. Accounting for the money would be costly.
The amendment would provide that until the Court System's
computer system is operational, an annual estimate of
collected surcharges would be turned over to the
legislature. Once the new computer system is operational
the precise figure would be given.
Mr. Christensen observed that the legislation would require
a $45 dollar surcharge on misdemeanors and a $15 dollar
surcharge on infractions. He pointed out that there are
many offenses, technically classified as misdemeanors, which
are on the bail schedule and are not subject to jail time.
New residence addresses must be notified to the Division of
Motor Vehicles within 30 days. Failure to do so is a
misdemeanor, but since it is on the bail schedule, the
maximum fine is $20 dollars. Without the amendment this
would receive a $45 dollar surcharge.
Mr. Christensen noted that if Amendment A is adopted that
there would be a one time $5 thousand dollars cost for form
redistribution.
In response to a question by Representative Davies, Mr.
Christensen estimated that the average fine on a misdemeanor
case is $250 dollars. Fines on the bail schedule range from
$15 dollars to over $100 dollars. The average fine on the
bail schedule would be between $30 and $60 dollars. Felony
cases generally receive jail time.
In response to a question by Co-Chair Therriault, Mr.
Christensen suggested that "misdemeanor not on a bail
forfeiture schedule" be added on page 2, line 27.
"Misdemeanor, which is on the bail forfeiture schedule,"
could be added to page 2, line 31.
Representative Davis observed that he was aware of the
problem. Ms. Davidson questioned if language would be
needed on line 27. She observed that subsection (3) deals
with misdemeanors and violations of municipal ordinances for
which a sentence of incarceration could be imposed. She did
not know if misdemeanors on the bail schedule are offenses
for which a sentence of incarceration could be imposed. She
suggested that adding "misdemeanor" to subsection (4) could
solve the problem.
Representative Davies referred to page 2, line 22. He noted
that AS 28.33.030 refers to operating a commercial vehicle
while intoxicated. He noted that AS 23.33.033, Presumptions
and Chemical Analysis of Breath or Blood, is not included.
Representative Davies added that AS 28.35.030, Operating a
Vehicle While Intoxicated and AS 28.35.032, Chemical Test
were included, but AS 28.35.031, Implied Consent was omitted
from offenses relating to driving under the influence with a
non-commercial license.
Ms. Davidson noted that the legislation was based on current
statutes.
Representative Davis provided members with Amendment B (copy
on file). Ms. Davidson explained that as the legislation is
currently written a $15 dollar surcharge is placed on an
infraction violation for which a sentence of incarceration
is not imposed. She observed that parking tickets would
fall under this category. Amendment B would provide that if
the fine or bail forfeiture amount were less than $30
dollars then a $5 dollar surcharge would be charged. If the
fine or bail forfeiture amount were $30 dollars or more a
$15 dollar surcharge would be charged.
Co-Chair Therriault observed that the legislation would
change the amount of revenue received by the state of
Alaska. However, the legislation does not automatically
authorize the expenditure to the Alaska Police Standards
Council. He maintained that the expenditure should be
considered with the Department of Public Safety's budget
before the full House Finance Committee.
Co-Chair Hanley noted that the fiscal note shows a total
operating budget of $627.4 thousand dollars for FY 99. Mr.
Shaw clarified that this is the amount of revenues estimated
to be collected as the result of HB 261. The estimated
change in revenues of $573.5 thousand dollars includes a
$53.9 thousand dollar reduction for excess authorization in
FY 99. The total operating budget of the Alaska Police
Standards Council's budget would be approximately $1.597
million dollars. The Council's FY 98 budget is $524
thousand dollars. The proposed FY 99 budget, without HB
261, would be $627 thousand dollars. Co-Chair Hanley
summarized that an additional $627 thousand dollars would be
added to the FY 99 proposed budget.
Co-Chair Hanley noted that persons are paying for their
Community Residential Center (CRC) beds. He asked why half
the money should not be diverted to the Department of
Corrections to pay for prison space.
Mr. Shay stressed that Alaska Police Standards Council has a
responsibility to support municipal and state correctional
training. The Council will be supporting training for
contract jail officers.
Co-Chair Hanley observed that funding for training could
potentially offset some costs that the Department of
Corrections or local communities have normally supported.
He emphasized that there should be a corresponding decrease
if the Council provides basic training that had been
previously paid for by others.
Co-Chair Therriault suggested that the fiscal note be zero
and the operating expenses be set through the regular budget
process.
Representative Mulder noted that the Council would provide
training for officers of the city of Valdez. Mr. Shaw noted
that the community jails officer program was built with the
support of the Alaska Police Standards Council.
Representative Mulder observed that costs for municipal
training would be shifted to the state of Alaska.
Representative Davis noted that the Council provides
services to all state police departments. City police will
collect some of the surcharges.
Ms. Davidson observed that, of 67,000 citations issued,
approximately 31,000 citations were issued by cities other
than Anchorage. Anchorage officers wrote approximately
14,000 citations. State Troopers wrote approximately 22,000
citations.
Co-Chair Hanley observed that Anchorage would have to keep
track of municipal fines. Mr. Shaw noted that the Council
would support the Anchorage Academy by paying some operating
costs for use of the academy and providing training.
Co-Chair Hanley clarified that the Anchorage Court System
would not receive funding from the surcharge. He expressed
frustration that communities are being discouraged from
taking control.
Mr. Shaw noted that the Council sets standards for community
correctional officers. The Council supports 63 percent of
the police population at the Anchorage training center.
Mr. Shaw spoke in support of Amendment A. He stressed that
the Court could do a good job of estimating the surcharge.
(Tape Change, HFC 98 -58, Side 2)
Co-Chair Therriault MOVED to ADOPT Amendment A as Amendment
Representative Davis MOVED to ADOPT Amendment B as Amendment
2. He stated that the amendment would lower the surcharge
on parking tickets.
Co-Chair Hanley questioned if there is a surcharge on
parking tickets.
Ms. Davidson stated that, under existing law, a surcharge is
based on a violation. She did not think that there is
currently a surcharge on parking tickets. She observed that
the legislation would add a surcharge on infractions. She
thought that parking tickets would fall under the definition
of infraction. She observed that the statutes contain
several types of fines for infractions.
Mr. Christensen clarified that, in Anchorage, parking
tickets are under the civil system. He thought that most
municipalities would charge parking tickets under a civil
ordinance. Tickets issued under a civil system would not
receive a surcharge.
Co-Chair Hanley requested information regarding violations
and infractions and the dollar amounts imposed.
HB 261 was HELD in Committee for further consideration.
HOUSE BILL NO. 404
"An Act relating to the regulation of commercial
vehicles; relating to the temporary registration of
out-of-state commercial vehicles; relating to
registration fees for commercial vehicles; and
providing for an effective date."
REPRESENTATIVE BILL WILLIAMS, SPONSOR, testified in support
of HB 404. He noted that the purpose of HB 404 is to
improve efficiency at the Division of Motor Vehicles and to
improve efficiency and safety of freight movement into, out
of, and within Alaska. Adoption of HB 404 would also allow
the State to participate in the International Registration
Plan.
Representative Williams maintained that the current state
commercial vehicle inspection law is unworkable. The bill
proposes to conform the inspection program to inspection
criteria found in the Federal Motor Carrier Safety
Regulations.
Representative Williams added that HB 404 would also
increase temporary fees for out-of-state trucks that operate
in Alaska from $50 dollars to $350. He asserted that this
would bring Alaskan fees in line with fees charged by other
states and provinces issuing temporary permits. Revenue
generated from this fee may be appropriated to operate weigh
stations and commercial vehicle safety programs.
Representative Williams observed that HB 404 would eliminate
the requirement for annual registration of commercial
trailers. The fees collected from the registration of
commercial trailers would be transferred to the cost of
registration of commercial vehicles, or 'power units'. He
pointed out that the bill is revenue neutral. The change is
required if Alaska wants to become part of the International
Registration Plan, which allows for a simplified method of
prorating fees to other jurisdictions in which Alaska
commercial vehicles operate, and vice versa. The state and
industry will gain substantial efficiencies by not having to
issue and physically tag 20,000 commercial trailers
annually.
Representative William emphasized that House Bill 404 would
create efficiencies in government and the private sector,
and create a safer transportation environment.
Representative Davies asked if there were any safety
implications in respect to inspections that would not be
done in the future.
JUANITA HENSLEY, LEGISLATIVE LIAISON, DIVISION OF MOTOR
VEHICLES, DEPARTMENT OF PUBLIC SAFETY spoke in support of HB
404. The legislation would create efficiencies for the
Division of Motor Vehicles. The Division would not be
required to register 18,000 commercial trailers a year.
Trailers would be registered once for a lifetime fee.
Future fees would be transferred to the power units. The
Division of Motor Vehicles does not inspect trailers for
safety. Inspections are performed at weigh stations and
through the Motor Carriers Safety Assistance Program.
Co-Chair Hanley referred to page 1, lines 6 - 9. Ms.
Hensley clarified that the section refers to proof of
commercial vehicle insurance.
Ms. Hensley observed that commercial vehicles carry $700
thousand dollars in insurance. Members questioned the
difference between commercial vehicle and a vehicle for
which securities are required. Ms. Hensley could not
respond.
Representative Mulder referred to page 3. line 8. Ms.
Hensley explained that a towed vehicle is the same as a
combination of motor vehicles and is still a power unit and
a trailer.
DENNIS POSHARD, LEGISLATIVE LIAISON, DEPARTMENT OF
TRANSPORTATION AND PUBLIC FACILITIES explained that the
definition on page 3, line 8 conforms to the federal
definition. The definition does not include vehicles that
were not previously covered.
In response to a question by Representative Davies, Mr.
Poshard noted that section 20 would require a one-time
registration fee of $10 dollars per trailer. Section 18
also incorporates the change.
In response to a question by Representative Mulder, Mr.
Poshard noted that AS 28.10.152 pertains to out-of-state
vehicles that are not registered in Alaska.
AVES THOMPSON, DIVISION OF MEASUREMENT STANDARDS AND
COMMERCIAL VEHICLE ENFORCEMENT, DEPARTMENT OF TRANSPORTATION
AND PUBLIC FACILITIES, ANCHORAGE explained that AS
19.10.300(a) pertains to:
"A commercial motor vehicle or a person that carries
freight in a motor vehicle for commercial purposes or a
person who rents or leases a motor vehicle for the use
of another to carry freight should procure and maintain
security in the following minimal amount..."
Mr. Thompson noted that the statute distinguishes between
the vehicle and a rented or leased vehicle. Insurance is
needed in both cases.
Co-Chair Hanley observed that the section is confusing. He
noted that it is based on both commercial purposes and
renting or leasing for freight.
Mr. Thompson noted that the Division fully supports the
legislation.
HARRY MCDONALD, ANCHORAGE testified in support of the
legislation. He noted the importance of increasing
temporary licenses for out-of-state trucks. Most out-of-
state trucks do business without paying any fees. He
observed that there is a commitment to keep the Tok scale
open all the time. He noted that he is with a local state
trucking company. He pointed out that the private sector
would save from not having to track trailers for annual
registration.
Representative Davies referred to the definition of
commercial vehicle. He questioned if a commercial motor
vehicle can be a towed vehicle, which implies that it
doesn't have a motor.
In response to a question by Representative Davies, Mr.
McDonald clarified that safety inspections are separate to
licensing. Safety inspections would still be required
annually on the trailers.
Co-Chair Therriault asked if there are many instances where
a person who only owned a truck would have the expense of
someone else's trailer. Mr. Thompson noted that anyone who
is pulling a trailer is either being paid by someone to pull
it or pulling it for hire. He felt that it would come out
even in the end.
Co-Chair Hanley referred to AS 19.10.300(a). Mr. Thompson
noted that 26,000 pounds is the weight a vehicle requires a
commercial license to drive, unless it has hazardous
materials. A commercial license is required for any vehicle
that is carrying hazardous materials, regardless of weight.
FRANK DILLON, EXECUTIVE VICE PRESIDENT, ALASKA TRUCKING
ASSOCIATION, INC. explained that the commercial vehicle
licensing law looks at commercial vehicles in terms of the
operator's license to drive with a weight threshold of
26,000 pounds. The language on page 3, "self propelled or
towed" makes sure that when the trailer is released from the
further definition of registration that they are still under
safety requirements for the purpose of commercial motor
vehicles. The intention is that trailers are still
considered commercial vehicles and required to follow
inspection laws. He observed that the dollies that connect
sets of trailers together are considered vehicles even
though they cannot go anywhere on their own. For the
purpose of insurance, definition, and commerce a trailer is
considered a vehicle, not a motor vehicle. He maintained
that the legislation clarifies and narrows the scope of
existing statute, so that it is more understandable and
enforceable than existing statute.
Mr. Dillon noted that the legislation requires proof of
insurance. He observed that changes were carefully made to
prevent unintended consequences. The intention is to give
more authority to weight station operators to do truck
inspections. He stressed that persons who weigh trucks
would be able to inspect them and put them out of service if
they are found to be unsafe. The merger of the Commercial
Vehicle Unit and the Division of Measurements and Standards
into the Department of Transportation and Public Facilities,
which took place by executive order last year, was a step in
this direction. The legislation further refines the
authority. He noted that resources for inspections are
still lacking.
Mr. Dillon stressed that the legislation would authorize the
practice of self-inspections. On the road inspections would
still take place. One federal standard would apply.
Inspections can also take place at a professional shop.
Companies that employ professional mechanics can do
inspections in house. Current statute prohibits self-
inspections, but has not been enforced.
Mr. Dillon noted that fees would be increased for out-of-
state trucks. He observed that the Tok weigh station is
open less than 40 percent of the time. A lot of trucks that
come into the state do not register in the state of Alaska.
If they do stop at Tok they have the choice of buying a $10
or $50 dollar permit. The legislation would require a $350
dollar 30 day renewable permit. He maintained that the fee
is in line with what other states charge. He observed that
$300 - $500 thousand dollars in additional fees would be
collected from out-of-state trucks. The legislation
contains intent language stating that this money may be
appropriated for use at weigh stations.
Mr. Dillon pointed out that annual registration of
commercial trailers would be eliminated. There is no safety
inspection attached to registration. Registration can be
done electronically. The legislation takes the revenue that
is collected on trailers and transfers it to corresponding
weights in the power unit area. Fees for smaller trailers
are transferred to smaller trucks. Fees for larger trailers
would be transferred to larger trucks and tractors. The
cost increase would range from $30 to $100 dollars annually.
He maintained that the fee would be offset through the
economic process and negotiations. More than 90 percent of
Alaska's freight comes in on trailers. The Division of
Motor Vehicles would save approximately 20,000 transactions.
The change only refers to commercial vehicle use.
Mr. Dillon referred to sections 18 and 19. He noted that
license fees are paid annually or biennially. He did not
think that increases in fees would place a hardship on
anyone's business. He acknowledged that individuals that
only own a truck would not see an economic benefit from the
legislation. He pointed out that the change in trailer
registration would benefit interstate commerce. He
maintained that there would be increased efficiencies way
through the entire state economy.
(Tape Change, HFC 98 -59, Side 1)
In response to a question by Representative Moses, Mr.
Dillon noted that an owner operator in Anchorage who pays an
increased fee of $30 dollars, grosses between $50 and $80
thousand dollars a year in 8 months. He did not think a
$30 dollar increase would be a burden. There would be a
maximum increase of $100 dollars per tractor.
Mr. Dillon clarified that trailers owned and operated by Sea
Land are registered in the state of Alaska. Out-of-state
trailers would be subject to a $350 dollar fee. He asserted
that the fee is not excessive. He noted that Alaska has
fewer requirements and lower fees for interstate commerce
than other states. He pointed out that owners would have
the option of licensing their vehicles in Alaska.
Mr. Dillon emphasized that the entire shift in revenue is
approximately $1.6 million dollars in a $7 billion dollar
economy. He reiterated that the legislation will gain
substantial efficiencies.
Mr. McDonald agreed that all of the Sea Land trailers are
registered in Alaska. He observed that the main impact of
the fee would be on trucks coming across the border.
PETER BLANAS, LINE DRIVER, TEAMSTERS UNION, ANCHORAGE
testified in support of HB 404. He emphasized that the
legislation would charge out-of-state fees for trucks
entering Alaska. He maintained that the number of out-of-
state trucks have increased and are taking work away from
Alaskans. He maintained that outside operators pay almost
no fees. He spoke in support of full-time operation of
state scales. He stressed that lack of enforcement is a
factor in vehicle accidents. Scale operators also appraise
drivers in regards to driving conditions and summon help in
emergencies. Money collected from outside operators could
be used to fund the Department of Transportation and Public
Facilities' inspection program. He only received one truck
inspection in the last four years. He noted that the
inspection was at his own request.
WILLIAM GATES, OWNER OPERATOR, SEA LAND, ANCHORAGE spoke in
support of the HB 404. He emphasized the need for safety
checks and full-time operation of the Tok weigh station. He
noted that the Tok weigh station is not open at night or on
the weekends. He stated that he could support the
additional $100 dollar licensing fee in order to ensure that
the inspection teams and weigh stations have sufficient
funding.
BARBARA HUFF TUCKNESS, DIRECTOR, LEGISLATIVE AND
GOVERNMENTAL AFFAIRS, TEAMSTERS LOCAL 959 testified in
support of HB 404. She referred to a letter by Jerry Hood,
Secretary-Treasurer, Teamsters Local 959 to Co-Chair
Therriault, dated 3/6/98. She stated that their first
concern is that the weigh stations be operational 24 hours a
day, seven days a week. She maintained that weigh stations
are open no more than 30 percent of the time. She asserted
that trucks are not being inspected in a safe manner. She
anticipated that some of the revenues generated by the
legislation would go toward continued funding of the weigh
stations.
Representative Davies asked if money needs to be
appropriated to open the weigh stations so that the money
can be collected.
Mr. Thompson clarified that the Tok weigh station was opened
24 hours, seven days a week during part of April and all of
May 1997. He stated that the proceeds from the legislation
would be used to fund weigh station operations and
commercial vehicle safety inspections. Tok would be
operated 24 hours a day, seven days a week. He noted that
expected revenues would be jeopardized if the Tok weigh
station is not fully operational.
Mr. Dillon clarified that trailers will only pay $10 dollars
for registration. Only power units would pay $350 dollars
for registration.
Mr. Thompson emphasized that the legislation solves some
very vexing problems through private sector/government
cooperation.
Representative Davies provided members with Amendment 1
(copy on file). The amendment would further clarify the
definition of commercial vehicles. He observed that he
might pursue the amendment at a later date.
Representative Davies provided members with Amendment 2
(copy on file). He explained that the amendment would add a
new section. The amendment is at the request of the
Department of Administration, Division of Motor Vehicles.
Ms. Hensley explained that the amendment would add a new
section 18. The amendment would allow non commercial
trailers to be registered with a one-time fee. The trailer
would not have to be reregistered unless it is sold. The
amendment would cover snow machine, boat trailers, house
trailers, box trailers, baggage trailers, and utility
trailers. She observed that the fee could be set by the
Legislature. The amendment calls for a $50 dollar fee. She
observed that 78,839 trailers were registered in 1997. She
observed that these trailers would only have to be
registered once more unless they were sold. She emphasized
that the amendment would add to the Division's efficiency.
The trailers could be registered through the mail. A
registration sticker would be issued for the lifetime of the
trailer.
Ms. Hensley clarified that trailers are currently registered
biennially for $10 dollars. The lifetime registration is
transferred to the new owner when the trailer is sold. The
new owner would only have to pay a transfer fee. Ms.
Hensley maintained that the seller would recoup the cost of
the trailer's registration.
Representative Kelly pointed out that the purpose of the
legislation is to regulate commercial trailers and vehicles.
The amendment is outside of the legislation's intent. Ms.
Hensley observed that the amendment is the result of
efficiency measures recommended by a reengineering team of
the public and private sectors.
Co-Chair Therriault questioned the financial impact of the
lifetime $50 dollar fee. Ms. Hensley observed that a $50
dollar fee spread over two years would be approximately $1.9
million dollars for each of the two years. She estimated
that 7,000 vehicles would be registered after the initial
two-year registration. Co-Chair Therriault observed that
revenues would be negatively affected in the out years.
Representative Davies pointed out that there would be
savings from a reduction of transactions. Ms. Hensley
stressed that the Department would like to move employees
from backroom operations to the front counter, in order to
reduce waiting lines at Division of Motor Vehicle counters
to no longer than 15 minutes. She noted that some areas
have waiting times of greater than 2 hours.
In response to a question by noted that transactions cost
the Division between $105 to $5 dollars each. Co-Chair
Hanley observed that 70,000 trailer registrations would be
reduced annually. He estimated that there would be a $350
thousand dollar savings as the result of the legislation.
Ms. Hensley requested that the Division of Motor Vehicles be
held harmless in order to meet their service goals.
Co-Chair Hanley pointed out that the savings would not
appear until after the two-year registration period. Co-
Chair Hanley spoke in support of the proposal.
Representative Davies stated that he would be more
supportive if the savings were rebated to the people making
the registration. He spoke in support of reducing the
registration fee.
Co-Chair Therriault pointed out that registration is based
on a 10-year life span. He suggested that trailers would
last longer than 10 years.
Representative Davis questioned if lifetime registration
could be presented as a voluntary option. Co-Chair Hanley
spoke against combining options.
Representative William stated that he supported the
amendment's concept, but requested that the issue be
addressed separately.
Representative Davis WITHDREW Amendment 2.
Representative Foster MOVED to report CSHB 404 (TRA) out of
Committee with the accompanying fiscal notes. There being NO
OBJECTION, it was so ordered.
ADJOURNMENT
The meeting adjourned at 4:00 p.m.
House Finance Committee 12 3/9/98
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